No income taxes for tournament clubs

The Federal Finance Court ruled:

No income taxes for tournament bridge clubs.

The Federal Finance Court (BFH) for the sport tournament bridge has made an important judgment: Clubs / associations do not have to pay income taxes to claim their sport, because tournament sports are considered “non-profit”.

It reads precisely: “From the general clause of § 52 (1) AO in comparison to the catalog purpose” chess “mentioned in § 52 II, 1 No. 21 it follows that it is essential that the purpose of the tournament sports the general public in a comparable manner promotes.

For a long time the sport of chess has been recognized as “sport”, although it lacks the characteristic “physical exercise”. The modalities of the game require considerable skill, concentration and combination skills, ie skills that are also necessary for the previously recognized sports. This is another reason why chess, like the Tournament Bridge, was recognized by the IOC as a “Recognized Member”.

For this reason, clubs and associations are exempted from paying income tax.

Nevertheless, the Federal Court of Justice ruled in a judgment of the same day next to this decision in another judgment that in his opinion tournament bridge does not have to be considered sport within the meaning of § 52 I 1 No. 21 AO. For the operation of the tournament bridge does not fall under the general definition of the sport to which a physical exercise is necessary, the execution of a game in the form of competitions under special organization do not make it a sport.

As a result, this is probably a very narrow observation / subtlety, for the practice, this is not important, an income tax must not be paid by the clubs and associations of the tournament bridge.

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